Square Enix plans to continue using Unreal Engine 4 for the third installment of the Final Fantasy 7 Remake series

Square Enix, the renowned Japanese gaming company, has decided to continue utilizing Unreal Engine 4 for the third installment of the Final Fantasy 7 Remake series, opting not to transition to Unreal Engine 5. This decision stems from the development team's familiarity with the older engine and the custom modifications they've made to it for previous titles.
In a conversation with GameSpot, Naoki Hamaguchi, the game's director, explained that sticking with Unreal Engine 4 helps the team leverage the expertise and customizations they've already established. Although there was initial consideration about moving to Unreal Engine 5, the benefits of continuity prevailed.
Hamaguchi also addressed the topic of artificial intelligence in game development. While Square Enix does not have strict policies regarding AI, Hamaguchi personally prefers not to rely on it for ideation or content creation. Instead, he views AI as a tool to streamline tasks, allowing creators to focus on innovation and efficiency.
Square Enix is not alone in this choice; Polish game developer The Astronauts is similarly continuing with Unreal Engine 4 for its upcoming game, Witchfire, due to maturity concerns with the newer engine when development began.
The gaming community observed Epic Games' reveal of Unreal Engine 5 in 2020, with the technology becoming available in 2022.